a blog dedicated to these topics is what am working on right now. only a few many know that am economics graduate and i love to discuss about opportunity costs and trade-offs.
but let me share it also here... because now i realized i have to put up my defences...
SAVINGS
yes, jude and i save a lot and in whatever form we save for the kid's college education... we save for our retirement... we save for emergencies.... we save because we have to save:
- because blessings may not always be this good. we have all heard of retrenchment or personal crisis and its the family, especially the kids who always suffer. whenever my friends comment on how savings-conscious we are this is what i always say: jude has a good job right now but we never know until when he will hold this job. it's stewardship that we practice.
- because emergencies may happen any time. unlike in his previous company, me and the little boys are no longer covered by hospital insurance (that's the trade-off...), we have health cards but only for outpatient cases. *knock on wood* in case one of us gets ill, i don't want to stress ourselves more by desperately borrowing money from our relatives and friends.
- because we want to sustain our living until we grow old. this is the reason which i brought up with jude when i told him that we save a percentage of his net pay. i know our kids love us but we love them as well, and part of that loving is giving them wings which we hope not to clip because of their responsibilities for us. soon they will also grow up and marry and the cycle continues. jude and i know very well the overwhelming duties in parenting and i want my kids to just focus and devote more of their resources to their families.
- because we also want to enjoy life... someone told me before that we save to travel and i agree with his point, "kelan pa? kapag matanda na kayo at parusa na maglakad ng isang kilometro?" so we save to pay for the airfare and the other expenses involve in a trip. in exchange for this, we're content with simple gadgets (i never held an ipod, blackberry, wii, etc.).
INVESTMENT
the hamilo coast club membership
oh yes, we're proud members of this premier, exclusive resort in nasugbu, batangas. jude is enjoying a club membership allowance from his company and he's expected to use it for club membership... and that's we did! it's not only a matter of prestige and enjoyment for us, but on top of this we're thinking that this is a good investment vehicle. we can force ourselves to save, let the club share's value go up and we sell it after some years. we're still thinking of what we can do with the proceeds if ever but using it as capitalization for a business, so i can have other option aside from going back to an office job, is a very nice idea.
you may have seen my posts in facebook about hamilo coast as we alredy like to have a little return on investment (ROI) as early as now.
real property
jude and i are on a lookout for another house and lot near makati (because prices of makati properties are really prohibitive for us). we already searched high and low for a property within our budget and i hope God will give us one.
we're leasing now our house in laguna and our plan is to keep it, not only because we love the place and the house, but because it's so hard to sell it.
we seriously considered early this year that we will move back and live in laguna but it's really not feasible. first and formost, jude has an agreeement with his big boss that his house must only be 20-minutes away from the office. so for the meantime we just really had to rent and yes, lease rate in makati is expensive, php 15k exactly for our apartment. some of our friends say it's exorbitant but when i computed to them the everyday gas and toll if ever jude will drive from laguna and back the amount will total to 11k... and yes, the pagod!
but of course we also feel that the rent money is sayang so we thought now of getting another property which will be in our name after 15 years. anyway, jude has another benefit of subsidized interest rate for any housing loan he will get thru the company. this will help us a lot in paying the monthly amortization.
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i only wish to put into detail how we go about with our finances as i think there's a need to... but if in the process i was able to inspire you to go for your financial goals, am happy that i was of help. :)
econ pala major mo sis, am so impressed! :)
ReplyDeleteyour post is not only helpful esp. to starter families like us, but also very straightforward & honest. I am learning a lot. keep it up ^_^
thanks, sis. frustration ko maging ekonomista, as profession. lol
ReplyDeletei just want to stress that there are trade-offs in everything we do... if we do save and invest or enjoy it's because we chose to scrimp on things non-essential for us. sabi ng nila... kanya-kanyang trip lang yan... hahaha!
true! i totally agree with you :) minsan lang kc, when we go to trips or buy nice clothes or stuffs for the kids, akala na ng mga tao super-luho tayo :( not realizing that we may have foregone some things rin naman, just so we can have what we think are good for us, diba? hay, yaan mo na... mostly inggit lang yan :P
ReplyDeleteAh yes, hubby and I was just talking about how it's so expensive to get a haircut and other salon services, so I just dont go. I get a haircut maybe once every 8 months, and never go for manicures or facials, just because it's not a big priority for me. We buy generic on practically everything (as opposed to name brand food items, medications, and household supplies), and I don't buy clothes unless they're on sale and I absolutely NEED to have it. In exchange, we get to travel. And even when we do, we get thrills from finding the cheapest rates and cheapest activities.
ReplyDeletesame here. we travel at least once a year because it's the only luho (if you can call it as such) we have. we're content with simple things for gadgets (like our cam is not slr, our phones are outdated, others are even 2nd-hands or none at all) just to give way for what we really want and that's to travel. besides, it's really in our nature as jude and i were into outdoors.
ReplyDelete